Emerging Markets To Dominate Luxury Goods Market

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    The value of the global luxury market was US$296.1 billion in 2013 and is expected to reach US$374.85 billion in 2020, growing at a compound annual growth rate (CAGR) of 3.4 per cent from 2014 to 2020, says a report by Transparency Market Research. ‘Global Luxury Goods Market ‒ Industry Analysis, Size, Share, Growth, Trends, and Forecast 2014 – 2020’ says Europe was the largest market for global luxury goods in 2013 due to substantial sales through travel retail and duty free shops. As of 2013, North America was the second-largest market for global luxury goods. The global luxury goods market is driven by under-penetrated emerging markets of Asia Pacific and rest of the world. The luxury goods market demonstrated high growth for the period 2009-2012, but growth slowed down in 2013. Growth is expected to be moderate in 2014 and emerging markets such as the UAE, Saudi Arabia, Egypt, Singapore, Malaysia, Thailand, India, Brazil, South Africa, Vietnam, and Indonesia are expected to drive growth during the forecast period 2014 to 2020. The North American market is witnessing decent growth for absolute luxury goods in contrast to Europe, where per capita expenditure on luxury goods has decreased. The report says most luxury goods companies are currently focusing on emerging markets as these are scarcely penetrated, though consumers have both knowledge of luxury items and buying power for the same.